The interim managers will be bound to report suspicions under rules due in soon, but that could see them fired by their clients, according to interim management experts. But the managers will also risk prosecution if they fail to report their suspicions.
Tony Groom, head of the Turnaround Management Association, said the risk was par for the course for the professionals involved.
‘Professional company doctors are independent and should be able to identify inappropriate funds. It’s a matter of integrity and reputation.’
Meanwhile Alan Taylor, a chartered accountant at interim management company Ashton Penney, said the problem was most acute for company doctors. ‘Interim managers are particularly exposed,’ he said.
‘Turnaround managers are in a peculiar position. They have to report the suspicious transactions as soon as they become aware of them, but they would not become aware of them straight away,’ said Taylor.
Steve Absolom and Will Wright from KPMG Restructuring have been appointed joint administrators to City Motor Holdings and associated companies
Partners from Johnston Carmichael have been appointed as joint administrators to Axon Well Interventions Products UK
Begbies Traynor have been appointed administrators of William Anelay Ltd, York, one of Britain’s longest-established construction and heritage restoration companies
Smith & Williamson has been appointed administrators of charity 4Children